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Consider a project that cost $100,000 and yields a return of $30,000 for five years. At the end of the fifth year, there is a cost of $20,000 to dispose of the waste from the project. Should the project be undertaken if the discount rate is 0? 10 percent? 15 percent? The interest rate at which the net present discounted value of the project is zero is reffered to as the internal rate of return of the project.
Appalachian Coal Mining believes that it can increase labor productivity and, there-fore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipme..
How many units of good X will be purchased when Px=4910, determine the inverse demand function for good x.
Explain why global warming is not likely to be solved by the market mechanism alone. Utilize the terms externality and public goods in your explanation.
q1. if real salaries increase but nominal salaries do not what can be said of prices on average?q2. he second year of
When comparing perfect competition and monopoly, a major assumption made is that
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods, and good Y costs py=$2 per unit. The price of good x, px, is also exogenous..
Theres two products: "safe cars" and "dangerous cars"
What is international health? What are the 3 common perceptions of health outcomes and social inequalities? What is the Social Gradient? What is the term for good stress? How can stress become a factor in healthy outcomes?
Suppose that the government decides to impose a tax on the producers of potato chips. How will the tax affect the potato chips prices and the quantities sold? Explain using demand and supply curves.
An individual purchases quantities a, b, and c of three different commodities whose prices are p, q, and r, respectively. The consumer spends m dollars, where m > 2p, and the utility function is given by. Show that the optimal expenditure on the seco..
The decline in the value of the dollar from 1985 to 1988 was beneficial to. Which of the following will increase interest rates in the short run? The concept of "lender of last resort" is that when. The Federal Reserve System was established.
In general, do you favor having government more and more power to regulate private industry? Please provide documentation for your answers. Feel free to comment on the postings of your fellow students.
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